APA Oil & Gas E&P
APA Corporation
APA Corporation, the holding company for Apache, explores for and produces oil, natural gas, and NGLs in the U.S. (mainly the Permian Basin of West Texas), Egypt's Western Desert, and the U.K. North Sea. It is also developing the GranMorgu oil project offshore Suriname with TotalEnergies, targeting first oil in 2028. FY2025 total revenues were $8.9 billion and net income attributable to common stock $1.43 billion. Since acquiring Callon in 2024, APA has sold non-core assets, cut costs, and reduced debt. Most of its North Sea production is expected to end before 2030.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 12:24 (SEC EDGAR) · Source 10-K filed: February 26, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
Company profile
- Legal name
- APA Corp
- Headquarters
- HOUSTON, TX
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NASDAQ: APA
- Industry
- Oil & Gas E&P
- CIK
- 1841666
- Website
- https://apacorp.com/ ↗
Workforce (as of FY2025 year-end)
Employees
1,791
Source: Form 10-K (FY2025) cover page and business description
02
Earnings calendar
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q3 FY2026
Quarter end: September 2026. In past years, Q3 results were released 8–38 days after quarter end (Oct 8, 2025; Nov 7, 2024; Nov 2, 2023). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 8–58 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q2 FY2026 | Jun 30, 2026 | Jul 8, 2026 (+8 days) | Aug 6, 2026 10-Q (+37 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 14, 2026 (+14 days) | May 7, 2026 10-Q (+37 days) |
| Q4 FY2025 | Dec 31, 2025 | Jan 20, 2026 (+20 days) | Feb 26, 2026 10-K (+57 days) |
| Q3 FY2025 | Sep 30, 2025 | Oct 8, 2025 (+8 days) | Nov 6, 2025 10-Q (+37 days) |
| Q2 FY2025 | Jun 30, 2025 | Aug 7, 2025 (+38 days) | Aug 7, 2025 10-Q (+38 days) |
| Q1 FY2025 | Mar 31, 2025 | May 8, 2025 (+38 days) | May 8, 2025 10-Q (+38 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 27, 2025 (+58 days) | Feb 28, 2025 10-K (+59 days) |
| Q3 FY2024 | Sep 30, 2024 | Nov 7, 2024 (+38 days) | Nov 7, 2024 10-Q (+38 days) |
| Q2 FY2024 | Jun 30, 2024 | Aug 1, 2024 (+32 days) | Aug 2, 2024 10-Q (+33 days) |
| Q1 FY2024 | Mar 31, 2024 | May 2, 2024 (+32 days) | May 2, 2024 10-Q (+32 days) |
| Q4 FY2023 | Dec 31, 2023 | Feb 22, 2024 (+53 days) | Feb 22, 2024 10-K (+53 days) |
| Q3 FY2023 | Sep 30, 2023 | Nov 2, 2023 (+33 days) | Nov 2, 2023 10-Q (+33 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.
03
Flagship products & services
Production
Crude oil
Examples: Permian, Egypt, North Sea
Oil revenues $5,809M in 2025 — 80% of production revenues.
Production
Natural gas
Examples: Permian, Egypt (sold to EGPC), Beryl
Gas revenues $770M in 2025.
Production
Natural gas liquids
Examples: Permian
NGL revenues $650M in 2025.
From Note 15 of the FY2025 Form 10-K. 2025 production was 169.5 MMboe; year-end proved reserves were 1,056 MMboe.
04
Recent strategic focus
FY2025 from the 10-K, and the latest quarter from the Q2 2026 earnings release.
Q2 2026 results
Reported production 410,000 BOE per day; net income attributable to common stock $747M; free cash flow $738M.
Source: Q2 2026 earnings release
Debt reduction
Repaid $752M of near-term bonds in the first half of 2026; net debt was $3.3B at the end of Q2.
Source: Q2 2026 earnings release
Exploration deals
A pending $70M upfront acquisition of Savant Alaska (infrastructure next to APA's North Slope acreage) and Eni's entry into Uruguay Block 6.
Source: Q2 2026 earnings release
New Mexico exit
Sold non-core Permian assets in 2025, including all New Mexico positions, for $571M used mainly to reduce debt.
Source: Form 10-K (FY2025)
Capex ÷ D&A (FY2025)
1.19x
Roughly matches depreciation — mostly maintenance/replacement
formulacapital expenditures ÷ depreciation & amortization
e.g.$2,740M ÷ $2,304M = 1.19x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Where the money goes, over time
Unit: $M. Capex went from $2.31B in FY2023 to $2.74B in FY2025
- Capex
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
05
Key figures at a glance
FY2023–FY2025, 3 years.
Revenue (FY2025)
$8.92B
As reported in the 10-K
Revenue CAGR (2 years)
+3.8%
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($8,920M ÷ $8,279M) ^ (1÷2) − 1 = 3.8%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
34.6%▼caution
-10.0pt vs. 2 years ago
formulaoperating income ÷ revenue × 100
e.g.$3,087M ÷ $8,920M × 100 = 34.6%
ROE (FY2025)
25.2%▲favorable
3-year average: 51.0%
As reported in the 10-K
P/B (FY2025 end)
1.42x
formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)
e.g.6.1x × $3.99 ÷ $17.26 = 1.42x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
2.4x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($8,790M + $4,493M − $516M) ÷ ($3,087M + $2,304M) = 2.4x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ―
Revenue grew +3.8% a year over 2 years (modest growth)
From $8.28B in FY2023 to $8.92B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 44.6% → 34.6%
How much operating profit is left per $100 of revenue. It moved -10.0 points over 2 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 34.3% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 3 of 3 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 51.0% over 3 years (latest: 25.2%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
06
Business model
United States
Onshore oil and gas production concentrated in the Midland and Delaware sub-basins of the Permian, plus legacy Gulf of America interests and exploration acreage in Alaska.
01 what it draws on
Inputs & resources
- 2.6 million gross acres (1.3 million net)
- About 4,000 operated wells
02 what it does
Activities
- Drilling and completing shale wells
- Buying third-party gas and oil to meet delivery commitments
03 who it serves
Customers
- Integrated oil companies, refiners, marketers, utilities, and midstream companies
04 how money comes in
How it earns
- Oil, gas, and NGL sales at index-based prices
- Purchased oil and gas sales ($1.69B in 2025)
United States: how it makes money
- 62% of 2025 production and 74% of year-end proved reserves.
- Segment operating income $1.67B in 2025.
Egypt
Conventional onshore production in the Western Desert under production-sharing contracts with the state oil company EGPC, through a joint venture two-thirds owned by APA and one-third by Sinopec.
01 what it draws on
Inputs & resources
- 7.5 million gross acres, the largest position in the Western Desert
- 3-D seismic over three million acres
02 what it does
Activities
- Exploration and development drilling (98 wells in 2025)
03 who it serves
Customers
- EGPC (substantially all gas; oil when called on)
- Export oil buyers
04 how money comes in
How it earns
- Cost recovery and profit share of production
- Gas sold to EGPC with a minimum price of $2.65/MMBtu
Egypt: how it makes money
- 31% of 2025 production including Sinopec's one-third share (23% excluding it).
- Segment operating income $1.42B in 2025.
North Sea
Offshore U.K. fields including Forties and Beryl. APA suspended new drilling in 2023 and expects to stop production at its North Sea facilities before 2030.
01 what it draws on
Inputs & resources
- About 176,000 gross acres
02 what it does
Activities
- Operating existing fields with spending directed to safety and integrity
03 who it serves
Customers
- Crude buyers under term and spot contracts; gas sold at the national grid
04 how money comes in
How it earns
- Oil, gas, and NGL sales
North Sea: how it makes money
- 7% of 2025 production; segment operating income $21M.
Suriname and exploration
A 50% interest in Block 58 offshore Suriname with operator TotalEnergies, which carries most development costs; exploration in Uruguay and Alaska.
01 what it draws on
Inputs & resources
- Block 58 joint venture with TotalEnergies
02 what it does
Activities
- Developing GranMorgu (220,000 b/d capacity FPSO)
03 who it serves
Customers
- —
04 how money comes in
How it earns
- None until first oil, expected 2028
Suriname and exploration: how it makes money
- 74 MMboe of proved reserves booked in Suriname at year-end 2025.
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100
U.S.
5,541 (62%)profit 1,670 · margin 30.1%
Egypt
2,637 (29%)profit 1,416 · margin 53.7%
North Sea
773 (9%)profit 21 · margin 2.7%
Source: Form 10-K (FY2025) — Note 15, business segment information Revenue includes purchased oil and gas sales ($1,691M, U.S.) and realized derivative gains. Profit is segment operating income; Suriname and other recorded −$20M.
07
Where it earns
Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.
Largest market (FY2025)
United States — 53% of revenue
Revenue by country / region (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
United States
3,819 (53%)Egypt
2,637 (36%)United Kingdom (North Sea)
773 (11%)
Source: Form 10-K (FY2025) — Items 1 and 2, operating areas Oil, natural gas, and NGL production revenues; excludes $1,691M of purchased oil and gas sales in the U.S.
08
Contract structure
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
Production is sold at market-linked prices. U.S. crude is sold mostly under 30-day evergreen contracts priced daily; gas is sold at index prices. In Egypt, gas is sold to EGPC under a 2025 agreement with a $2.65/MMBtu minimum price and higher pricing on incremental volumes.
- Spot / one-off transaction
U.S. oil, gas, and NGL sales
$3,819M (53% of 2025 production revenues)
Typical term: 30-day evergreen crude contracts; daily or monthly index gas
- long
Egypt production-sharing contracts
$2,637M (36%)
Typical term: Development leases refreshed for 20 years in 2021; 40% cost-recovery limit and 30% profit share
Sales to EGPC were about 15% of worldwide oil, gas, and NGL revenues.
- Spot / one-off transaction
North Sea sales
$773M (11%)
Typical term: Term and spot crude contracts; gas at National Balancing Point prices
- long
U.S. delivery commitments
Average 152 Bcf of gas a year in 2026–2029
Typical term: Market-based pricing
APA buys third-party gas and oil to meet some commitments.
Source: Form 10-K (FY2025) — Items 1 and 2, marketing; Note 14
09
Alliances & capital ties
Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.
Business partnership
TotalEnergies
Joint venture in Block 58 offshore Suriname (50% each in exploration), operated by TotalEnergies. TotalEnergies pays 87.5% of the first $10B of gross capital, 75% of the next $5B, and 62.5% above that. The GranMorgu development (about $10.5B total investment) targets first oil in 2028.
Capital tie / equity stake
Sinopec
Holds a one-third interest in the joint venture that owns APA's Egypt operations.
Business partnership
Eni
Strategic partner in Block 6 offshore Uruguay; APA keeps a 60% working interest and Eni funds most of the initial exploration well planned for 2027.
10
Customers & suppliers
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Integrated oil companies, refiners, marketers, utilities, and midstream companies in the U.S.; EGPC and export buyers in Egypt; buyers in the U.K.
Named by the company
- EGPC (Egyptian General Petroleum Corporation) — About 15% of worldwide oil, gas, and NGL revenues in 2025 (17% in 2024).Form 10-K (FY2025) — Note 14, Major Customers
What the filings disclose
- APA doesn't believe the loss of any single customer would have a material adverse effect. (Form 10-K (FY2025), Note 14)
Suppliers
Drilling, completion, and oilfield service providers, and third-party gas and oil bought to meet delivery commitments.
Named by the company
None named in the 10-K or the company’s press releases.
11
Competitors & peers
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
APA's 10-K describes a highly competitive industry for reserves, leases, equipment, and personnel. Competitors include national oil companies, major integrated companies, other independents, and other energy suppliers, some with much larger resources. It doesn't name specific companies.
Competitors named in the 10-K
APA's 10-K doesn't name competitors.
Peer group the company chose
2026 compensation peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
E&P companies chosen on size (revenue, assets, and market capitalization), similar domestic or international operations, headquarters in Texas or surrounding states, and competition for executive talent.
- Antero Resourcessite ↗
- Civitas Resourcessite ↗
- Coterra Energysite ↗
- Devon Energysite ↗
- Diamondback Energysite ↗
- EOG Resourcessite ↗
- Expand Energysite ↗
- Matador Resourcessite ↗
- Murphy Oilsite ↗
- Occidental Petroleumsite ↗
- Ovintivsite ↗
Added for 2026, replacing Hess and Marathon Oil, which were acquired
Source: Proxy statement (DEF 14A, filed 2026-04-09) — Compensation Peer GroupCompany names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
12
M&A history
Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.
APA bought Callon in 2024 and then sold non-core properties to reduce debt.
Apr 2024
Callon Petroleum
All-stock, valued at about $4.5B including Callon's debt
About 120,000 net acres in the Delaware Basin and 25,000 in the Midland Basin.
- Stated purpose (company)
- To enhance APA's Permian asset base and inventory of short-cycle opportunities.
Source: Form 10-K (FY2025) — Items 1 and 2, Business Strategy
Pending
Savant Alaska
$70M upfront plus contingent payments
Midstream, pipeline, and field infrastructure next to APA's eastern North Slope acreage.
- Stated purpose (company)
- To enhance development flexibility, accelerate timelines, and lower future development costs.
Savant closing is expected by year-end 2026.
13
Five years of financials
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
| Line item | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|
| Income statement ($M) | |||
| Revenue | 8,279 | 9,737 | 8,920 |
| Operating income | 3,696 | 2,444 | 3,087 |
| Pretax income | 2,883 | 1,535 | 2,791 |
| Net income (attributable) | 2,855 | 804 | 1,434 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 17.6% | -8.4% |
| Operating margincalcoperating income ÷ revenue × 100 | 44.6% | 25.1% | 34.6% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 34.5% | 8.3% | 16.1% |
| Balance sheet ($M) | |||
| Total assets | 15,244 | 19,390 | 17,761 |
| Total equity | 3,691 | 6,362 | 7,003 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 5,188 | 6,044 | 4,493 |
| Equity ratio | 17.4% | 27.2% | 34.3% |
| ROE | 107.5% | 20.3% | 25.2% |
| Cash flow ($M) | |||
| Operating CF | 3,129 | 3,620 | 4,545 |
| Investing CF | -2,138 | -924 | -2,153 |
| Financing CF | -1,149 | -2,158 | -2,501 |
| Free cash flowcalccash flow from operations − capital expenditures | 816 | 769 | 1,805 |
| Cash and equivalents | 87 | 625 | 516 |
| Per share & other | |||
| EPS ($) | 9.25 | 2.27 | 3.99 |
| BVPS ($) | 8.75 | 14.45 | 17.26 |
| Dividend per share ($) | 1.00 | 1.00 | 1.00 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 10.8% | 44.1% | 25.1% |
| P/E (x) | 3.9 | 10.2 | 6.1 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 3.1 | 2.9 | 2.4 |
| P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share) | 4.10 | 1.60 | 1.42 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
14
Is ROIC above WACC?
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
20.4%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$3,087M × (1 − 21%) ÷ $11,951M × 100 = 20.4%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
6.72%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $8.79B ÷ ($8.79B + $4.49B) = 66.2%
e.g.Debt weight: $4.49B ÷ ($8.79B + $4.49B) = 33.8%
e.g.WACC: 7.2% × 66.2% + 7.2% × (1 − 21%) × 33.8% = 6.72%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
WACC 6.72% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4%
- β
- 0.59 (price-derived adjusted beta, but correlation with the market is low (R² 0.02), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 7.24%
- Cost of debt
- 7.19%
- Effective tax rate
- 21%
- Capital structure (equity : debt)
- 66% : 34%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 6.72%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.
Initial β: 0.59 (price-derived adjusted beta. Raw β 0.39, R² 0.02, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.386 + 0.33 = 0.589
termsβ (beta)
Period 2024-04-12–2026-10-06, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.4.0% + 0.59 × 5.5% = 7.2%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)
termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (FY2025)
-7.4%
Perpetual FCF growth: g = r − FCF ÷ EV = 6.7% − 14.1%
Past FCF growth (FY2023–FY2025)
+48.7%
Compound annual rate, 2 years
Past revenue growth (FY2023–FY2025)
+3.8%
Compound annual rate, 2 years
Inputs (FY2025): free cash flow $1.81B (operating CF − capex); enterprise value $12.77B = market cap $8.79B + debt $4.49B − cash and short-term investments $516M; r = WACC of 6.7% using this page’s default assumptions (β 0.59, risk-free 4.0%, market premium 5.5%).
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$12.8B
FCF $1.81B ÷ (6.7% − -7.4%)
Theoretical ÷ actual enterprise value
1.00x
Above 1x: these assumptions value the business above the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 4.7% | 5.7% | 6.7% | 7.7% | 8.7% |
|---|---|---|---|---|---|
| 0% | 3.01x | 2.48x | 2.11x | 1.84x | 1.63x |
| 2% | 5.24x | 3.82x | 3.01x | 2.48x | 2.11x |
| 4% | 20.20x | 8.32x | 5.24x | 3.82x | 3.01x |
| 6% | — | — | 20.20x | 8.32x | 5.24x |
| 8% | — | — | — | — | 20.20x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.
16
Earnings quality
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 2.92x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): -16.7%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 111%
Most profit comes from core operations.
- ✓
Days sales outstanding: 71 → 43 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-26
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
- Days inventory outstanding
formulaperiod-end receivables ÷ revenue × 365
formulaperiod-end inventory ÷ revenue × 365
termsInventory · Revenue (net sales)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$4,545M ÷ $1,434M = 3.17x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$3,087M ÷ $2,791M × 100 = 111%
termsOperating income · Income before income taxes (pretax income)
formulaperiod-end receivables ÷ revenue × 365
e.g.$1,062M ÷ $8,920M × 365 = 43 days
17
Strengths & weaknesses
Strengths
1. Diversified production
Production across the Permian, Egypt, and the North Sea, with a balanced oil and gas mix.
Evidence: Form 10-K (FY2025), Items 1 and 2
2. Large Egypt position
The largest acreage holder in Egypt's Western Desert, with 76% of its gross acreage there undeveloped.
Evidence: Form 10-K (FY2025)
3. Cost cuts and debt reduction
$350M of annualized savings achieved by end-2025 (targeting about $500M run-rate by end-2026); debt reduced by $2.3B since year-end 2024.
Evidence: Form 10-K (FY2025); Q2 2026 earnings release
4. Low-cost Suriname exposure
TotalEnergies carries most GranMorgu development costs under the Block 58 agreement.
Evidence: Form 10-K (FY2025)
Weaknesses
1. Revenue swings with prices
Total revenues were $8.3B, $9.7B, and $8.9B in 2023–2025 as commodity prices moved.
Evidence: Form 10-K (FY2025)
2. Egypt minority interest and customer
Sinopec takes one-third of Egypt results (net income attributable to the noncontrolling interest was $258M in 2025), and EGPC accounts for about 15% of revenues.
Evidence: Form 10-K (FY2025)
3. Declining North Sea
No new drilling since 2023; APA expects to cease production at its North Sea facilities before 2030.
Evidence: Form 10-K (FY2025)
18
What draws investors to it
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
6.1x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
4.09%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
25%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
20.5%
(Operating CF − capex) ÷ market cap
1. Cash returns and debt reduction
APA expects to return at least 60% of free cash flow to shareholders in 2026 while reducing debt.
- What has to hold
- Oil and gas prices stay supportive.
- The other side
- Results are highly sensitive to commodity prices.
Evidence: Q2 2026 earnings release
2. Suriname growth
GranMorgu adds oil production from 2028, largely funded by TotalEnergies.
- What has to hold
- The project stays on schedule.
- The other side
- North Sea production is winding down before 2030.
Evidence: Form 10-K (FY2025)
Total revenues and capital spending come from the 10-K because they aren't in standard XBRL tags. Financial history on this page starts at FY2023.
19
Resilience
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
2.4x
$516M vs. $213M
Interest coverage (operating income ÷ interest expense)
9.6x
$3.09B vs. $323M
Free cash flow ÷ dividends paid
5.0x
$1.81B vs. $360M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | -8.4% in FY2025 ($9.74B → $8.92B) | Not yet, as of FY2025 |
| Operating income | -33.9% in FY2024 ($3.7B → $2.44B) | Not yet, as of FY2025 |
Covers only the 3 fiscal years on record (FY2023–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Strong operating cash flow
$4.55B in 2025 against $2.74B of additions to oil and gas property.
Source: SEC EDGAR XBRL; Form 10-K (FY2025)
Lower debt
Debt fell to about $4.5B at year-end 2025 from $6.0B a year earlier.
Source: SEC EDGAR XBRL
Price exposure
Revenue and cash flow fall quickly when oil and gas prices drop.
Source: Form 10-K (FY2025), Risk Factors
20
Risks (including geopolitical)
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).
- 1Demand & macro
Oil and gas prices
- Company disclosure (summarized from the 10-K)
- Prices are affected by international conflicts, inflation, tariffs, trade policy, and OPEC+ actions.
- Company’s stated mitigation
- Diversified portfolio and flexible capital allocation.
- This site’s assessment
- Impact High / Likelihood High
- 2Geopolitics & supply chain
International operations
- Company disclosure (summarized from the 10-K)
- Egypt operations depend on production-sharing contracts and sales to the state-owned EGPC.
- Company’s stated mitigation
- Merged concession agreement ratified in 2021.
- This site’s assessment
- Impact Med / Likelihood Med
- 3Law & regulation
U.K. taxes and regulation
- Company disclosure (summarized from the 10-K)
- U.K. tax levies and regulatory obligations led APA to conclude North Sea investments weren't economic.
- Company’s stated mitigation
- Spending limited to safety and integrity.
- This site’s assessment
- Impact Med / Likelihood High
- 4Law & regulation
Climate and drilling regulation
- Company disclosure (summarized from the 10-K)
- Methane, greenhouse gas, and hydraulic fracturing rules could raise costs.
- Company’s stated mitigation
- Not stated.
- This site’s assessment
- Impact Med / Likelihood Med
21
What to watch going forward
- GranMorgu progress toward 2028 first oil.
- Egypt gas output under the new pricing agreement.
- Debt reduction and shareholder returns (at least 60% of free cash flow).
- Closing of the Savant Alaska acquisition.
- Cost savings run-rate.
22
Source documents
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Last updated
Analysis last edited: October 7, 2026 · Financial data fetched: October 7, 2026 12:24 (SEC EDGAR) · Source 10-K filed: February 26, 2026
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent APA Corporation’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.